What is a business?

Do you have a business or are you involved in a money generating activity? Put your business to the following test and ask yourself . . . what is a business?

A) Is your business (going to be) profitable ? Bankers will tell you that this basic concept is often overlooked. “Profitable” means anytime, anyplace and anywhere. The business plan is robust and can weather season and fashion. What you offer taps deeply into human nature – people are prepared to pay handsomely for your product or your services. “Scraping by” is not a business.

One of the characteristics of a profitable business is its competitive edge – an edge that is difficult to duplicate.

B) Is your business scaleable ? This means that one person can live off this business with a small investment but equally 1000 people could be employed with an equally bigger investment. Your business can be scaled up in times of expansion and scaled down in times of recession but the doors would remain open under all economic conditions.

C) Is your business sustainable ? If the “ME” disappeared out the business, would it survive? Are you the brand? Are the skills, resources, systems and procedures in place to continue to make a profit under all circumstances? A business built around the genius of one person is not a business.

If A, B and C are true then you have a business which you can sell, which is the fourth characteristic of a true business.